What are the tax consequences of classifying the loan

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Question - In 2013, the Rose Corporation made a $400,000 interest-free loan to John Rose, the corporation's controlling shareholder. Mr. Rose is also the corporation's chief executive officer and receives a salary of $300,000 a year. What are the tax consequences of classifying the loan as a compensation-related loan rather than as a corporation shareholder loan?

Reference no: EM133124462

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